Issue - meetings

This report accompanies the Annual Audit Letter for 2010/11.  The Letter is issued by the Audit Commission.

(i)        that the contents of the Annual Audit Letter be noted;

(ii)       that it be noted that the Audit Committee will monitor progress against the main features highlighted and delivery of the Action Plan

Councillor Butt (Deputy Leader/Lead Member for Resources) introduced the item and explained that the Annual Audit Letter for 2010/11 summarised the findings of the Audit Commission.  He stated that the council had experienced a particularly challenging year due to the migration of financial information into a single Oracle system, the transition of accounting statements to comply with International Financial Reporting Standards (IFRS) and fundamental structural changes including the downsizing of Finance staff to achieve £1.5m savings.  However despite these challenges, Councillor Butt confirmed that an unqualified audit opinion of the 2010/11 accounts had been achieved.

The Chair then invited Andrea White (District Auditor, Audit Commission) to address the Executive.  Andrea White began by advising that the first figure on page 81 of the agenda of the Annual Audit Commission Letter should read £538K and not £533K.  She confirmed that an unqualified audit opinion had been issued for the 2010/11 accounts, the Brent Pension Fund and for Value for Money.  It had been acknowledged that the council had experienced a challenging year with the changes to financial reporting and the need to achieve savings stretching capacity.  Some weaknesses had been identified on financial reporting that required the Audit Commission to undertake additional work on some accounts.  An additional fee had been incurred as the council had published its audited statement of accounts after the 30 September 2011 deadline.  However, despite some errors being identified, there had been no significant changes to the reported outturn.  With regard to Value for Money, Andrea White advised that a sound framework and planning was in place although there was some room for improvement in respect of internal controls and financial planning.  There was also a need to embed risk management and good procurement practice across the council, to increase the council’s reserves.

Andrea White concluded by advising that councillors work closely with officers to provide clear direction on their priorities, undertake a monitoring role and ensure that corrective action is taken at an early stage to help the council addressed the significant challenges it faces.

The Director of Finance and Corporate Services thanked the Audit Commission for the work undertaken with the council despite an especially challenging year.  The Chair added her voice of thanks on behalf of the Executive.

RESOLVED:-

(i)        that the contents of the Annual Audit Letter be noted;

(ii)       that it be noted that the Audit Committee will monitor progress against the main features highlighted and delivery of the Action Plan.